Most signs point to a tough road ahead for U.S. Treasuries. However, there are also factors that say the bonds may yet have good prospects.

Most signs point to a hard road ahead for U.S. Treasuries. The biggest is Federal Reserve Chair Janet Yellen's flashing red signal that rates could rise soon after the central bank ends its bond-purchase program. That warning continued to hammer short-dated U.S. debt last week.

There are other sell signs. U.S. data are painting a brighter picture of the economy, and domestic stock indexes keep printing record highs. The benchmark 10-year Treasury note fell on Friday afternoon, with its yield rising to 2.726%. In late...